BCIT388 ASSIGNMENT 1: Mobile Technology

Streaming Apps: Are they a threat to Live Sport?

A research report prepared for the partial fulfillment of requirements for the

subject BCIT388

Gulshan Sharma Sudeep Parajuli

10/29/2015

The arrival of live video streaming apps is being hailed as a revolutionary moment in the way people

communicate with customers and with each other. Its so early in the technology cycle, with the expected evolution of these apps in terms of quality and functionality that its too difficult to predict. It is safe to assume a significant impact, and as broadcasters experiment with incorporating audience broadcast

content, the viewing experience overall will improve.

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Contents Chapter 1 ....................................................................................................................................................... 3

Introduction .................................................................................................................................................. 3

1.1 Fight of the Century ...................................................................................................................... 3

1.2 Periscope ....................................................................................................................................... 3

1.3 Meerkat ......................................................................................................................................... 4

1.4 MyEye............................................................................................................................................ 5

Chapter 2 ....................................................................................................................................................... 7

Monetization Strategy .................................................................................................................................. 7

2.1 Monetization Strategy for Developers .......................................................................................... 7

2.2 Monetization strategy for Users ................................................................................................... 8

Chapter 3 ..................................................................................................................................................... 10

Benefits and Risk ......................................................................................................................................... 10

3.1 Benefits of using Live Streaming Apps ...................................................................................... 10

3.2 Threats of using Live Streaming Apps ....................................................................................... 11

Chapter 4 ..................................................................................................................................................... 13

Conclusion ................................................................................................................................................... 13

4.1 Summary and Conclusion ........................................................................................................... 13

Works Cited ................................................................................................................................................. 14

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Chapter 1

Introduction

1.1 Fight of the Century

With a defensive masterclass, American Mayweather, delivered a win against his Philippine rival

at the MGM Grand Garden Arena. Mayweather, who added the WBO welterweight title to the

WBC and WBA titles he already owned, was awarded the fight 118-110, 116-112 and 116-112

by the three judges. With his victory, Mayweather also cemented his status as the greatest pound-

for-pound boxer of his generation.

'The Fight of the Century' was billed for the bout had a change of hands for as much as $350,000

(232,000) and American fans were charged almost $100 (66) to watch on television, with

millions more watching across the world. Rival broadcasters Showtime and HBO joined forces

for the first time since Lennox Lewis fought Mike Tyson in 2002 to show the fight, with Jimmy

Lennon Jr and Michael Buffer sharing ring announcer duties. (Dirs, 2015)

After the blockbuster fight concluded, Costolo claimed Twitters application Periscope was the

real winner in Las Vegas. The live-streaming service was used by people with pay-per-view to

lend a helping hand to those who struggled to get access, or didnt want to pay. (Thielman, 2015)

There are various live streaming apps in the market. We would focus on main three leading

applications, their share on market, their advantages and disadvantages.

1.2 Periscope The developer of periscope were fascinated by the idea of discovering the world through

someone else's eyes and wanted to build the closest thing to teleportation. They realized that

there were many ways to discover events and places, but there was no better way to experience a

place right now than through live videos. They further concluded that a picture may be worth a

thousand words, but live video could take you someplace and show you around. (Periscope,

2015)

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According to former CEO Dick Costolo, Periscope added more than a million users in its first 10

days. (Wagner, 2015)Beykpour and his co-founder Joe Bernstein had came up with the idea for

Periscope while travelling abroad in 2013. Beykpour was in Istanbul when protests broke out in

Taksim Square. He had wanted to see what was happening there, so he turned to Twitter. While

he could read about the protests, he couldnt see them. Periscope was founded in February 2014.

After seeking a lot of advice from people both inside Twitter and out, Beykpour and Bernstein

determined an acquisition was the best way to ensure their product would succeed. Twitter and

Beykpour didn't reveal the exact acquisition amount, but an industry sources tell Business

Insider the deal was somewhere between $US75 and $US120 million. (Shontell, 2015)

Periscope is a mobile app that lets users broadcast live to others. The viewers are able to make

comment, ask questions, and send hearts to the broadcaster in real time. Periscope users create

usernames and follow each other, just like they do on Twitter. Its a lot like Meerkat and

YouNow, two livestreaming competitors.

Key Features

Hearts can be sent from viewers to broadcasters as a show of appreciation for whats

being streamed, like a virtual round of applause

Periscope sends you notification anytime a person you follow is broadcasting live, or

anytime someone you follow recommends another persons live broadcast to all their

followers.

It has been localized in 29 different languages

It has a feature of instant replay

Users can share it easily on their twitter accounts

1.3 Meerkat

Meerkat was created by Ben Rubin, a 27-year-old former architecture student who is originally

from Israel. It allows people to stream live video to their Twitter followers. In other words, while

people are using your phone or tablet to video something, whether it's a speech or a party or just

you talking into the camera, people (followers) see it after about a 15-second delay. It was one of

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the first app to connect live video streaming to Twitter. Only after being around for a couple of

weeks from its lunch it had already more than 150,000 users.

TechCrunchs Jordan Crook reported that Meerkat closed a $US12 million round of funding.

Meerkat syncs up with Twitter to let its user live stream and share video in real time. Sources tell

Techcrunch that Meerkat now has more than 300,000 users. (Crook, 2015)

Key Features

It has unlimited recordings

It has unlimited queue

It has up to 60 min of recording per video

It has full chat transcript of recorded videos (Meerkat Streams, 2015)

1.4 MyEye

A new live video streaming platform, MyEye, released by its founding investor and ambassador

David Beckham, former England football team captain. Besides Beckham, the platform was

founded by Paul Kavanagh, Mark Betteridge and Lee Musgrave. MyEye is particularly geared

to sportspeople, pop stars and entertainment personalities, who want to engage and create

intimacy with their fans, giving them control over their news announcements or behind the

scenes content.

Key Features

It is not linked to any platform and can be promoted across all other social media.

The broadcast video is recorded and stored for 72 hours before it expires.

Significantly less data and bandwidth than other streaming platforms

Users can stream to the world or keep things direct between streamer and a friend, or

even amongst a private group.

Viewers can interact with clips using with a flick of the thumb which is a little like a

Like. The more views and reactions the more popular the clip becomes.

The most popular clips are recognized each day and users can find the best material using

MyEyes proprietary Globe search functionality.

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Users can individually select the key people you want notifications from and follow other

users. (Butcher, 2015)

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Chapter 2

Monetization Strategy

2.1 Monetization Strategy for Developers

Application development and monetization need to be part of the same overall strategic plan.

Many publishers today use a freemium model, in which the application download is free and

there are items available for purchase within the application itself (extra features and

functionality, virtual purchases, etc.). Once you have an audiences attention, there are many

ways to monetize it, including mobile advertising, in-app purchases and subscription models.

Since mobile app developers arent advertising experts, its critical to find a partner that

understands both app development and advertising. Twitter is working with brands to promote

content from platforms within its core product, and serving as a middleman between brands and

stars with major social followings. Twitter is heavily dependent on Niche, a company that

connects brands with social media all-stars. Twitter acquired Niche in February for a reported

$30 million. Niche, Mr. Lunenfeld said, has relationships with 10,000 social media "creators"

and is especially well connected on Vine. Twitter makes money from Vine, a personality-driven

platform, by connecting brands with talent. Those stars, who command massive followings, then

create branded content on the platform. Brittany Furlan, one such star, is followed by 9.1 million

people, for instance. Nash Grier, another star, is followed by 11.6 million people.

(AdvertisingAge, 2015)

Cost per install is a relatively new marketing mechanism and is the mobile equivalent to CPA

(cost per acquisition) in the web marketing world. CPI is exactly what it sounds like you pay

per install that you get. Youll often see this as a pop-up in games and apps, prompting you to

look at another game and Get It Now. Those apps are dynamically served based on what app

you have yourself.

Landing a sponsor is a great way to make money on free app. The money is up front and you

gain brand credibility with your audience. With sponsorships, you partner with advertisers who

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provide your users with rewards when they complete certain actions within your app. In this

model, the app earns money by taking a share of the revenue from redeemed rewards, and

simultaneously allows to incorporate advertising that actually enhances apps ability to engage

users.

2.2 Monetization strategy for Users

Live streaming are slowly starting to develop a community of mainstream audiences that like to

click into a live stream and view what someone in doing in real time unedited live video. The

most popular YouTube searches one is how to make money on YouTube which gets 18,000

searches a month on Google just in the U.S (TJ, 2015)

YouNow is one of the live-streaming app that brings in money, and attracts huge audiences, with

100 million user sessions monthly. Its audience are mostly teens, watching YouTube performers

interacting directly with their fans. Like YouTube, YouNow shares revenues with its most

popular talent. Some of the folks interacting with fans are making as much as $10,000 monthly,

according to the company. (Graham, 2015)

People are always looking to learn new things and if you can teach them something useful

publicly (via live-stream), you can ask for a follow up. Meerkat from the kitchen while you bake

sourdough bread. Then ask for interested viewers to purchase your bread-making PDF via

Gumroad, a crazy simple way to sell your digital goods online. If you know something that will

help others improve themselves, their cooking, or their business, then you can probably sell it.

If you dont care about making money, but realize what youre live steaming is helpful to your

viewers, then consider asking them to donate money to a charity. People are far more likely to

contribute to a cause (other than your wallet) if theyre getting something they see as valuable.

The live streamer to watch right now is Grant Cardone. Heres how and why he is monetizing

Meerkat and Periscope.

Grant Cardone creates stream content relevant to what he sells (books, programs,

multifamily real estate)

He engages with the audience answering questions about the content

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He has his team share his website url (online store) in stream where people can buy his

products and offers a 50% discount every time he streams or tweets ect..

He has promo codes named after each stream and says use promo code meerkat or

periscope to track where sales come from and offers that as a discount for watching his

stream

At the end of every Meerkat stream his link is shop online directly to his store where he

tells people to go to buy his products that can help them related to the content of the

stream

He then rewards people with shout outs on the stream if they screenshot it and share it on

Twitter etc.. and this helps again drive more attention/sales. (TJ, 2015)

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Chapter 3

Benefits and Risk

3.1 Benefits of using Live Streaming Apps

The arrival of live video streaming apps is being hailed as a revolutionary moment in the way

people communicate with customers and with each other. Some of the benefits of using live

video streaming are mentioned below:

1. Taking Social media to new level

Live video streaming technology is much more accessible these days. A quarter of the

global population now has a smart phone and they all can access these free services.

Secondly, social media has become second nature and everyone is now more than happy

to share every moment of their life through a variety of public platforms. By making use

of your existing community, you have far greater potential for making a splash with your

live content.

2. A game-changer in global communication

From sharing key moments, speeches or events to holding live discussions with

customers or seeking ideas and instant feedback from the public, live video streaming in

such an instant, portable and easy way could have a major impact on the way we engage

our key audiences.

3. The next level in live video communication

Ultimately, this is about the next level in video communications. Gone are the lengthy

waits as you upload content to Youtube or grapple with Skype or Google Hangouts to

bring multiple people to one conversation. With the live streaming apps, you can engage

your entire team, community or audience with one swipe of a button and make sure your

message is heard around the world.

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3.2 Threats of using Live Streaming Apps

There are many points of concern of the live video streaming apps. Some of the threats of using

the live video streaming apps are mentioned below:

1. Controversial use of apps

There has been controversial use of live streaming apps at live sports events. Sponsors of

events fear losing live TV audience to viewing broadcasts from attendees at events. One

of the most well-known instances of this was during a big pay-per-view boxing match,

where ring side attendees broadcast the match.

2. Threat to Content owners

After the Mayweather-Pacquiao fight, many content owners saw mobile live streaming

apps as a threat to their business. Many stories said content rights holders were sucker

punched by the apps, declaring them a threat to broadcasters and content owners. Content

owners, distributors, and others in the media industry ecosystem are faced with three

different responses to these new threats: they can ignore, fight, or embrace them.

3. Piracy and Image right

Viewers are whipping out their cell phones to film music concerts, football games or

cable TV shows. They're sharing experiences - often with high ticket prices - for free

worldwide and sending copyright holders, tech firms and anti-piracy companies on a mad

scramble to get the broadcasts taken down midstream. In a race against time, copyright

holders are navigating complex legal and technological waters fast. The challenges of

real-time copyright enforcement came back in the spotlight over the Sept. 12 weekend,

when Periscope responded to more than 140 takedown notices, most about the fight

between Mayweather and Andre Berto - a pay-per-view boxing match that cost up to

$74.95 to watch on Showtime but that thousands watched through the app for free.

(Wong & Mercury, 2015)

4. High Bandwidth Consumptions

Live-stream users should expect their data bill to reflect how they use the live video

streaming apps. According to Ustream CEO Brad Hunstable, If you broadcast for one

minute, once to twice a week its not a big deal, But if you broadcast for an hour once or

twice a day, you could have some sticker shock. For instance, on Ustream, users can

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broadcast using high definition 720p at bitrates up to 2.5 megabits per second (Mbps) on

Android, or at 360p for 1.5 Mbps. When it comes to watching videos, you can view at a

resolution up to 720p on either platform, but the Ustream dynamically adjusts the video

feed for the network or device. Last year alone, according to Cisco, the worlds mobile

data usage swelled 69%. These handheld devices alone accounted for 30 times more

traffic than the entire Internet used in 2000. And video, not surprisingly, is the biggest

culprit, accounting for 55% of mobile data traffic last year. (Pullen, 2015)

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Chapter 4

Conclusion

4.1 Summary and Conclusion

Live video streaming apps have attracted the attention of media and broadcasting companies as they

offer a very low cost way to reach new audiences. CNN used Periscope during their coverage of the birth

of Princess Charlotte, with a reporter touring London on the top deck of a bus, interviewing riders, and

showing the sites. In the political arena, David Cameron used Periscope to broadcast his first post-

election address from number 10. Musicians have also been using them. The Rolling Stones used

Periscope to broadcast their secret show in Los Angeles in May this year. Local bands use them to

broadcast to their followers.

In the view of many observers, these mobile device broadcasts shouldnt be considered a threat to the

mainstream professional broadcasts from TV networks. Would someone really watch an entire sporting

event broadcast from a hand held phone, with jerky motion and accompanying background noise?

Its so early in the technology cycle, with the expected evolution of these apps in terms of quality and

functionality that its too difficult to predict. It is safe to assume a significant impact, and as broadcasters

experiment with incorporating audience broadcast content, the viewing experience overall will improve.

We are only now seeing the implications of live streaming apps. They're a problemor an opportunity,

depending on your perspectivethats not going away. What the Mayweather-Pacquiao match did

prove was that there is a clear customer demand for live-streamed video to mobile devices. The

broadcast industry has the chance to harness a new way of doing business. We can ignore this or rage

against it, or we can embrace it. I believe that broadcasters and content owners that blithely dismiss this

threat or choose to fight against it are being shortsighted.

Rather than sticking to old ways of doing things, the broadcasters of tomorrow should be concerned

with creating and monetizing new products to meet the market demand for personalized experiences

targeted to active consumers. If they dont, someone else will step in and seize the opportunity.

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approach-vine-periscope-ads/298530/

Butcher, M. (2015, July 22). Techcrunch. Retrieved October 12, 2015, from

techcrunch.com/2015/07/22/stream-it-like-beckham-global-star-backs-periscopemeerkat-rival-

myeye/#.o8xflb:h9rr

Crook, J. (2015, March 20). Techcrunch. Retrieved October 08, 2015, from

techcrunch.com/2015/03/20/live-now-meerkat-raises-12m-from-greylock-at-a-40m-valuation/

Dirs, B. (2015, May 03). BBC Sports. Retrieved October 24, 2015, from

www.bbc.com/sport/0/boxing/32571743

Graham, J. (2015, May 15). USA Today. Retrieved October 16, 2015, from

www.usatoday.com/story/tech/2015/05/14/teens-flock-to-younow/27321135/

Meerkat Streams. (2015). Retrieved October 10, 2015, from meerkatstreams.com/register

Periscope. (2015). Retrieved October 5, 2015, from https://www.periscope.tv/about

Pullen, J. P. (2015, April 02). Time. Retrieved October 19, 2015, from time.com/3768107/meerkat-

periscope-data-plan/

Shontell, A. (2015, March 27). Business Insider. Retrieved October 08, 2015, from

www.businessinsider.com.au/what-is-periscope-and-why-twitter-bought-it-2015-3

Thielman, S. (2015, May 04). Theguardian. Retrieved October 04, 2015, from

www.theguardian.com/technology/2015/may/04/twitter-periscope-winner-mayweather-pacquiao

TJ. (2015, June 06). Jobs In Social Media. Retrieved October 15, 2015, from

blog.jobsinsocialmedia.com/2015/06/06/how-to-make-money-live-streaming-on-meerkat-or-periscope/

Wagner, K. (2015, August 12). Re/code. Retrieved October 11, 2015, from

recode.net/2015/08/12/periscope-has-10-million-users-kinda/

Wong, Q., & Mercury, S. J. (2015, October 01). PHYS ORG. Retrieved October 18, 2015, from

phys.org/news/2015-10-anti-piracy-unfolds-real-periscope-live-streaming.html